DIPCON Engineering Services Limited, the Trinidadian construction company pursuing Minister of Finance, Winston Jordan, for US$2.2M owed by the State, is in fact over US$2.5M in arrears in taxes to the Guyana Revenue Authority (GRA) and has been asked to “immediately” pay up.

On Monday, a Letter of Garnishment from GRA Commissioner General, Godfrey Statia, was sent to Finance Secretary at the Ministry of Finance, Michael Joseph and Dipcon disclosing the outstanding sum of G$527,846,657.

The letter comes even as on June 24, 2019, judgment given by Justice Priya Sewnarine-Beharry stated that the money owed to DIPCON by the State, was to be paid on or before July 8, 2019 or Jordan would be liable to imprisonment for 21 days.

The matter stemmed from an inherited State debt of US$2,228,400.67 to the company which, after not receiving its payment for contracts completed for the former People’s Progressive Party (PPP) administration, approached the court.

However, on Monday, President David Granger issued a Grant of Respite to the judgment levied against Jordan placing any punishment on hold.

Meanwhile, the letter sent out by Statia indicated that the request for DIPCON to pay up its sum due is in keeping with Section 102 (1) of the Income Tax Act, Chapter 81:01.

Section 102 (1) states: “When the Commissioner-General has knowledge or suspects that a person is or is about to become indebted or liable to make any payment to a person liable to make a payment of tax under this Act, he may, by registered letter or by letter served personally, require such first-mentioned person to pay the moneys otherwise payable to such second- mentioned person in whole or in part to him on account of the liability of the second mentioned person under this Act.”

Meanwhile, the Act states that the receipt of the Commissioner-General for moneys paid as required under the Act shall, to the extent of the payment, be “a good and sufficient discharge of the original liability”.

This goes for both the person who pays such moneys to the Commissioner-General to the person liable to make a payment under the Act and the person liable to make a payment of tax under the Act to the Commissioner-General.

Indicating that it is through this guidance that the GRA invokes its powers to garnish the sum, Statia stated: “Therefore, with immediate effect, you are required to pay over to the Revenue Authority the sum of $527,846,657 GYD due to the State by the Company. Please note that under Section 102 (2), the Revenue Authority will issue a receipt for the sum collected.”

The GRA Head also reminded that, according to the Income Tax Act, every person who has discharged any liability to a person liable to make payment of tax under the Act without complying with requirements under the section shall be liable to pay the Commissioner-General, as a debt due to the State, an amount equal to the liability discharged.

Otherwise, the Act stated that the person in question could also have to pay the amount which he was required under the Section of the Act to pay to the Commissioner General whichever is the less.

Meanwhile, by placing on hold the execution of the punishment imposed on Jordan, the President acted within his executive powers vested onto him under Article 188(1)(b) of the Constitution.

He granted Jordan a respite “until all appeals and remedies available to him and the State have been exhausted”.

The Government intends to continue its challenge of the fact that the Finance Minister is facing punishment in his personal capacity for a decision of the Court against the State.

Furthermore, it is a case which dates back to the previous administration and a court matter more than a decade ago.